Corporate social responsibility: Idea that encompasses the globe

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The ongoing globalization process implicates the enterprises from industrialized countries are paid to greater public attention. The public expects from them to take ethical and social responsibility -- not only in their own country but also in all countries which are involved in the value added chain.

Corporate responsibility: The world Business Council For Sustainable Development defines corporate responsibility as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families and the local community and society at large. More than goodwill, corporate community involvement or strategic corporate philanthropy, corporate responsibility is a genuine attempt by a company to build meaningful relationships between the corporate sector and the rest of the society.

Corporate responsibility is achieved when a business adapts all of its practices to ensure that it operates in ways that meet, or exceed the ethical, legal, commercial and public expectations that society has of business. To be considered effective, corporate responsibility must be an integrated part of day-to-day business, engaging all stakeholders and including strategies to support individual managers to make socially responsible decisions, conform to ethical behavior and obey the law.

Social responsibility: Once considered mutually exclusive; Commerce, Conscience and Compassion have converged in a powerful global concept - Corporate Social Responsibility (CSR). In practice, the CSR involves examining all the ways that a company's actions and operations have the potential to impact others. It means looking beyond the office walls to consider how decisions effect a broad range of individuals, groups and organizations. Referred to as stakeholders, investors, employees, customers, suppliers, host Governments and regulatory agencies.

Transforming corporate responsibility into practical action: Examples of strategies employed by businesses to transform commitment to corporate responsibility into practical action include:

l Articulating a relevant organizational philosophy and incorporating it into mission, vision and value statements

l Drafting a meaningful code of ethics that is consistently applied

l Revising employment relations strategies

l Social and environmental reporting and audits

l Strategic philanthropy

l Undertaking pro bono work

l Employee volunteering

l Public education programmes

l Mentoring programmes

l Corporate community partnering

l Cause-related marketing

l Community forums

Why business should engage in corporate responsibility: Studies have shown that the benefits of engaging in corporate responsibility include:

l Improved financial performance

l Reduced risk exposure

l Identification of new products and new markets

l Enhanced brand image

l Increased sales and customer loyalty

lImproved recruitment and retention performance

l Creation of new business networks

l Improved staff motivation and enhanced skill set

l Improved trust

l Enhanced corporate reputations

l Improved Government relations

l Reduced regulatory intervention

l Reduced costs through environmental best practice leading to more sustainable profitability

How to profit from CSR actions: A 'social responsible' commitment will significantly improve business house reputation. And that means to have a real competitive advantage. Because a good image inspires confidence of customers and business partners, creates liability in the respective social environment and motivates the employees to work for a company they could be proud of. Such commitment will imbibe belief that a company should take into account the social, ethical and environmental effects of its activities on its staff and the community around it.

There is a misconception in the minds of a section of people that the concept relates to philanthropy activities only. While philanthropy could be one of the many activities supporting the concept but not the only one. Renowned multi-national tobacco companies contribute a handsome amount of money to the anti-cancer foundation for eradication of cancer. But no where in their business mission or vision or ethics the danger of health hazard their product carries is publicized. Similarly, while encouraging the farmers with incentives to produce more tobacco in place of food grain by the tobacco companies, certainly it goes against the spirit of the CSR concept despite their effort in forestation in certain parts of their operation area. There are giant multinational companies who boast of adopting CSR concept but at the same time are engaged in unethical activities such as employment of child labour or discrimination of gender etc. Certainly those companies do not comply with the principles of CSR.

Recently, Bangladesh Bank (BB) has issued a directive to the banks and financial institutions of the country to adopt CSR in their business activities as globally the concept is gaining acceptance because the contribution that business can and should make voluntarily towards environmentally sustainable and socially equitable development.

While adoption of CSR is voluntary and not mandatory, the Bangladesh Bank observed, "